Global Collections Services Make for Loyal Overseas Customers

Global Collections Services Make for Loyal Overseas Customers
Last Updated: 18 Nov 2020

You sell a great product. It does well outside your borders and your prospects for business expansion look good. 

But you have a choke point in your payments process. Payments on your invoices are slowed, and sometimes fluctuations in currency exchange rates pose a risk to the value of your product—and put repeat orders at risk.

Your overseas payment process may be the traditional method where you invoice in Canadian dollars, but your European customers shoulder the inconvenience (and cost) in navigating foreign currency exchange and conversion for their euros.

That process forces your customers to figure out their local currency equivalency to the amount billed on your invoice. Then to settle the account they must pay you with an international wire transfer. 

Banks are Cutting into your Profits.

In between the wire transfer and your business coffers, there are others taking their cut. That process is complicated as intermediaries add service charges and exchange rate fees. Consequently, fluctuating foreign exchange rates and payment processing fees at overseas banks always reduce the amount of the invoice you are billed.

Your overseas customer shoulders the burden of additional cost and effort. That burden translates into the diminished quality of their experience with you.  Meanwhile, you take a concurrent hit when exchange rates go short and your budget projections slide past the redline of profitability. Small businesses are vulnerable to cash flow glitches, and often fail when too much of the latter occurs.

Global Collections is the Solution. 

There is a way to handle your overseas business payments without hiring local talent to engage in bank negotiations and setting up multiple bank accounts. It is called Global Collections. 

Global Collections is an optimized accounts receivables solution. Here is how the process works, and why it is seamless:

  • MTFX Foreign Exchange & Global Payments provides your company with local overseas account numbers in the locations where your customers reside. We do that through international bank accounts numbers, IBANS, or through virtual account numbers, VANS.
  • Your overseas customers now have the option to pay you in their home currency. They pay your invoice immediately and conveniently. The burdens of currency conversion and giving correspondent banks a percentage of the payment are lifted and you will compete on a more even playing field.
  • You provide this service to your customer without increasing your overhead. You do not have to do the legwork or pay someone to do the overseas bank negotiations in a foreign market. MTFX Foreign Exchange & Global Payments already has the technology and infrastructure in place.  

Your International Cash Flow Risk Management is Now Under Control. 

Now that you have streamlined your overseas payment process, you can get a better handle on your international cash flow and volatile exchange rates. As the local currency payments begin accumulating in your accounts, you let the funds sit as a cash reserve to service those local markets.

Alternatively, you can convert those funds to your own currency and shift them back home. This is where a handy residual benefit kicks in Controlling FX transactions allows you to pocket optimal exchange rate margins, rather than charging your customers up to 4% in international wire exchanges. 

The Global Collections feature accommodates both your customer’s expectations, as well as helps you to maintain your own overseas cash flow on a flexible, even keel.

Stop Stifling your Foreign Exchange Cash Flow.

MTFX Foreign Exchange & Global Payments is your full-service platform for risk management in overseas transactions. Contact us and learn how our third-party payment platform can expedite your overseas collections, give your customers flexible payment options, and eliminate exorbitant bank charges and fees.

Open an account with MTFX today and start enjoying fast, cost-effective, and convenient international money transfers. 

Popular related articles;

  1. 4 Steps for an Effective Hedging Strategy
  2. 5 Important Steps in the Overseas Payment Process
  3. Transferring Money Overseas: What you Need to Know
  4. Are you a Multinational? Then you Should have a Strategic FX Management Plan in Place
  5. Best Way to Transfer Money to a Foreign Bank Account

Copyright © 2024 MTFX Group